There are few things worse than the stress of mounting debt, especially when your finances are running low. After all, you don’t want a few missed EMI repayments to put you in a financial fix, or worse, damage your credit score. Thankfully, there are ways to still manage your debt and salvage your finances. And the easiest one among them is to consolidate your debts through a small personal loan.
Here are some reasons to get a debt consolidation loan.
• Simplifies debt repayment
When you get a debt consolidation loan with a lender, you essentially merge all your debts into a single loan at a fixed interest rate. So, you only pay one monthly EMI, reducing the stress of keeping track of multiple EMI due dates from different loans.
Today, many lenders offer flexible EMI repayment options on debt consolidation loans making repayments even more convenient. All you need to do is choose a loan repayment plan that matches your budget. Need help? Use an online personal loan EMI calculator to decide on a suitable EMI plan.
Additional read: Simple and Smart Ways of Debt Consolidation
• Low-interest loan
Did you know when you pay EMIs from different loans, you may be spending a higher amount on interest? Yes, since various loans usually have different interest rates, there’s a good chance you may have one or more high-interest loans that drain your finances. By consolidating your loans, you only pay EMIs at a set interest rate. So, you lower the total interest amount spent in the long term.
The best part? You could get a debt consolidation loan with a lender offering affordable personal loan interest rates and save even more.
• Helps credit score
Now, you may be worried about an additional hard enquiry impacting your credit score, especially when you have a lot of mounting debts. But a debt consolidation loan does more to increase your credit score than you think.
It not only reduces the instances of missed repayments but also increases your total credit mix. While timely repayments point to efficient debt management, having a good mix of credit often implies sound financial management. Both of these ultimately increase your credit score.
• Easy loan application
The last thing you want while managing your debt is application stress. Thankfully, you never have to worry about complicated application procedures or hard to meet loan eligibility criteria while getting a small loan. Most lenders only require you to fulfil simple eligibility criteria, including age, employment status, minimum salary, etc. and ask for documentation to prove the same. That’s it! In most cases, approvals are quick, and the funds are disbursed swiftly to your bank account.
Additional read: What is Debt Consolidation? How Can a Personal Loan Help?
Manage your debts easily with a debt consolidation loan from Tata Capital!
No doubt, a debt consolidation loan can help you bring your debts under control. But we at Tata Capital can help you reduce the anxiety around applying for a new loan even further.
Thanks to our online application process, you can apply for a personal loan in just a few clicks. What’s more, you can decide your repayment plan and enjoy competitive interest rates too! Connect today!